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hehe, that's an interesting question.

wanglaoba(胃口倍好，身体倍棒)

I think the 70:30 is perhaps for just one of their investments while PE funds normally have many investings going on at the same time. The profit split ratio btw equity partner and other partners is negotiated case by case.

I think this is nothing to do with CIC's investing in Blackstone. CIC is just investing in Blackstone, the PE fund manager company, not directly in those PE investments.

I am not a PE guy. According to my poor knowledge about PE, waterfall payout ratio changes accordingly when the final investing return changes. Say, if the project IRR is 10%, the Equity Partner (here it's Blackstone) got 80% of the final profit; if the IRR is 12%, Blackstone may only get 70%. However, the total profit is higher and Blackstone actually earns more from 70% of the bigger pie than 80% of the smaller one. Right?

(#1451@52)
Last Updated: 2008-11-17

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Fidelity Layoffs to Total 3,000 Workers -jinx99(ABCP); 2008-11-17 {581} (#1444@52)
By BLOOMBERG NEWS
Published: November 14, 2008

Fidelity Investments, the world’s largest mutual fund manager, will eliminate about 1,700 jobs in the first three months of 2009, adding to dismissals that started this week as it confronts an eroding asset base. Together, the two rounds of job cuts represent 3,000 employees, or about 7 percent of the company’s 44,400-member work force, a Fidelity spokeswoman said. The global market sell-off has reduced Fidelity’s assets under management this year by about 13 percent, to $1.4 trillion from $1.6 trillion through Sept. 30.

Citi will cut 53,000 more -wanglaoba(胃口倍好，身体倍棒); 2008-11-17 {2081} (#1445@52)
本文发表在 rolia.net 枫下论坛Bank Will Cut 53,000 Jobs, Slash Expenses by 20%

Associated Press

NEW YORK -- Citigroup Inc. is cutting approximately 53,000 more jobs in the coming quarters as the banking giant struggles to steady itself after suffering massive losses from deteriorating debt.

The plans, posted on the company's Web site, are being discussed by CEO Vikram Pandit at the company's town hall meeting in New York Monday with employees.

The company said total headcount is being reduced by 20% from its peak of 375,000 at the end of 2007; the company had already announced in October that it was eliminating about 22,000 jobs from those levels.

Citigroup is also planning to reduce expenses by 20%, targeting 2009 expenses of $50 billion to $52 billion.

The New York-based bank has posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter.

Shortly before the town hall meeting in New York, Citigroup Chairman Win Bischoff said at a business forum in Dubai, United Arab Emirates, that it would be irresponsible for Citi and other companies not to look at staffing in the event of a prolonged economic downturn.

"What all of us have done -- and perhaps injudiciously -- we've added a lot of people over … this very benign period," Mr. Bischoff said.

"If there is a reversion to the mean … those job losses will obviously fall particularly heavily on the financial sector," he added. "Certainly they will fall particularly heavily on London and New York."

In his comments to the Associated Press, Mr. Bischoff didn't rule out the likelihood that Citi's leaders would go without bonuses this year -- a move that would effectively amount to a substantial pay cut for the company's executives.

"Watch this space," he said when asked about lost bonuses.

On Sunday, Goldman Sachs Group Inc. said seven top executives, including Chief Executive Lloyd Blankfein, opted out of receiving cash or stock bonuses for 2008 amid the ongoing credit crisis.

—Brett Philbin of Dow Jones Newswires contributed to this article更多精彩文章及讨论，请光临枫下论坛 rolia.net

Tell me sth about this company pls. -jinx99(ABCP); 2008-11-17 (#1446@52)

One of the largest and best Private Equity shops (others are KKR, TPG, Ceberus, etc) in the world. 中投（CIC) invested in it at a high price and got lots of backlashes domestically, however, I don't think it's a too bad deal as a long term investing. -wanglaoba(胃口倍好，身体倍棒); 2008-11-17 (#1447@52)

I heard the company use waterfall payout method and rate is 70:30, when the rate usually is 80:20. Why CIC still want to do business with this company. -jinx99(ABCP); 2008-11-17 {129} (#1450@52)
Does CIC have too much money? or why CIC can't do investment without involving blackstone?

Sorry for above stupid questions.

hehe, that's an interesting question. -wanglaoba(胃口倍好，身体倍棒); 2008-11-17 {832} (#1451@52)
I think the 70:30 is perhaps for just one of their investments while PE funds normally have many investings going on at the same time. The profit split ratio btw equity partner and other partners is negotiated case by case.

I think this is nothing to do with CIC's investing in Blackstone. CIC is just investing in Blackstone, the PE fund manager company, not directly in those PE investments.

I am not a PE guy. According to my poor knowledge about PE, waterfall payout ratio changes accordingly when the final investing return changes. Say, if the project IRR is 10%, the Equity Partner (here it's Blackstone) got 80% of the final profit; if the IRR is 12%, Blackstone may only get 70%. However, the total profit is higher and Blackstone actually earns more from 70% of the bigger pie than 80% of the smaller one. Right?

A little bit reference for PE, in case it be of interest to you. -wanglaoba(胃口倍好，身体倍棒); 2008-11-17 {43} (#1449@52)
http://en.wikipedia.org/wiki/Private_equity
http://en.wikipedia.org/wiki/Private_equity

@Baltimore

hehe, that's an interesting question.

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